Tenstorrent, a Canadian-founded and now US-based AI hardware company, has raised $693 million USD in a Series D funding round.
Led by AFW Partners and Samsung Securities, the round also saw participation from Bezos Expeditions, LG Electronics, and Georgian, among others. This brings Tenstorrent’s total funding to nearly $1 billion USD.
Expanding to Compete with AI Giants
The funds will be used to enhance the companies open-source AI software stacks, grow its team, expand global development centers, and build AI systems and clouds. With a vision to challenge industry leader Nvidia, Tenstorrent aims to solidify its position in the competitive AI chip market.
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Balancing US Relocation with Canadian Roots
Tenstorrent recently moved its headquarters from Toronto to Santa Clara, California, to attract larger US investments and prepare for a potential IPO. However, it maintains a strong presence in Canada, employing 140 people in its Toronto office.
“Canada remains at the heart of everything we do,” said Bob Grim, VP of Investor Relations. “Our roots and core AI hardware design come from Canada, and we’re committed to growing our workforce there.”
Industry-Leading Technology and Business Model
Founded in 2016 by Ljubisa Bajic, the firm builds and licenses chips for AI training and inference while monetizing its RISC-V and AI intellectual property (IP). CEO Jim Keller, a renowned chip designer from AMD and Tesla, has driven innovation since taking the helm in 2021.
The open-source approach distinguishes it in the automotive and robotics markets, enabling clients to scrutinize every line of code for risk mitigation. With $150 million USD in signed IP contracts and growing hardware capabilities, Tenstorrent provides diverse monetization avenues.
Strategic Focus and IPO Prospects
The company plans to leverage this funding to scale its hardware business and position itself for an IPO within the next two years.
“Tenstorrent offers a compelling combination of IP and hardware, reducing risk for investors,” Grim added. “We’re excited to deliver on our ambitious roadmap and redefine AI hardware.”
With this investment, Tenstorrent is well-poised to compete on the global stage, driving advancements in AI hardware and reshaping the future of machine learning technologies.
